The benefit estimation method employed by Carson and Mitchell in their analysis of the Clean Water Act was
a. the travel cost method (TCM)
b. the contingent valuation method (CVM)
c. the averting expenditure method (AEM)
d. the hedonic price method (HPM)
b. the contingent valuation method (CVM)
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A normal variable is standardized by:
A. subtracting off its mean from it and multiplying by its standard deviation. B. adding its mean to it and multiplying by its standard deviation. C. subtracting off its mean from it and dividing by its standard deviation. D. adding its mean to it and dividing by its standard deviation.
Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for women's clothing. An increase in the wage rate for seamstresses would be represented by a shift from
A) Demand 1 to Demand 2. B) Demand 2 to Demand 1. C) Supply 1 to Supply 2. D) Supply 2 to Supply 1.
If the government imposes a price ceiling,
a. producers must charge the ceiling price b. the price offered by producers must be no lower than that ceiling price c. the price offered by producers must be no higher than that ceiling price d. producers would be inclined to increase the quantity supplied e. the market supply curve shifts to the right
The government can aid in reducing pollution by using a policy of cap-and-trade, which means that
A) polluters are taxed on the amount of pollution they discharge. B) emission charges are established by the government. C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution. D) only some producers pollute and the others go out of business.